1. economies of scalemore efficiently or differently in volumecheaper and better quality (less waste), raw materials etc.

2. learning and experience curveincreased efficiency+ experience - costsBoston Consulting Group - surveyeach time experience doubled - (-)15-20% of costs

3. outsourcingeg labor to third-world countries

4. linkages and Interrelationshipsexternal: Just in Time manufacturing and supplyingsafe money - but higher switching costsinternal: Interrelations with other SBUs - share experiences + economies of scale

5. timing

6. location and governmental factors